Treasury Secretary Janet L. Yellen has warned the United States could run out of cash to pay its bills by early June if a debt limit deal is not reached. In a piece for Columbia Law School’s blog, CERL Affiliated Faculty Eric Orts urges President Biden to continue negotiating in good faith while considering other “legal authorities.” According to Prof. Orts,

As Buchanan and Dorf show, debt-ceiling brinksmanship has become increasingly common in recent years – and at some point (perhaps now) a president will be forced to make the difficult choice. Although some serious economic damage will result, it may at least end the ridiculous budgetary dance of constantly risking a global financial crisis.

Eric Orts is the Guardsmark Professor at the Wharton School of the University of Pennsylvania where he has taught since 1991.  He is a tenured professor in the Legal Studies and Business Ethics Department with a secondary appointment in the Management Department.  He also serves as the faculty director of the Initiative for Global Environmental Leadership and faculty co-director of the FINRA/Wharton Certified Regulatory and Compliance Professional Program. His primary research and teaching interests are in business theory, corporate governance, environmental sustainability, securities regulation, and professional ethics. Read his bio here.